How To Know If Your Local Housing Market Is Recovering

If you want to know if your area is recovering from the real estate crash, you need to watch out for these 8 signs.

* Watch out for frequent purchases made by investors and first-time homebuyers.  Watch out for an increase in sales of newly built homes versus discounted foreclosed properties.  Improved flow credit also show a recovering housing market.
* Find existing home sales.  Statistics on sales and prices of existing single-family homes provides general information regarding the real estate market.

* The Housing Market Index by The National Association of Home Builders rates the present single-family sales and single-family sales in the next six months.  Check out this rating to help you obtain a sense of demand for new houses.
* Check out the number of permits given out for new housing units each month through the New Residential Construction Index provided by the U.S. Census Bureau.
* Get information regarding New Residential Sales Index.  This index shows that a sales agreement was signed in the area.
* Purchase Application Index.  This index lets you know how confident people are about their financial standing and ability to buy a home.  This has a ripple effect because an increase in applications at mortgage lenders helps promote more construction jobs and brings revenues to homebuilders, lenders and home-furnishing companies.
* U.S. Foreclosure Index.  This will examine the number of formal notices like defaults, foreclosure auctions, and Real Estate Owned Statistics.